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An apple farmer must decide how many apples to harvest for the world apple market. He knows that there is a one-third probability that the world price will be $1, a one-third probability that it will be $1.50, and a one-third probability that it will be $2. His cost function is C(Q) = .01Q2. If the farmer is risk neutral
(Please provide me with detail explanation such that it makes more sense with it)
A.
he strictly prefers producing the expected profit-maximizing quantity to producing nothing.
B.
he is indifferent between producing the expected profit-maximizing quantity and producing nothing.
C.
he should produce at a quantity in between zero and the expected profit-maximizing quantity.
D.
he strictly prefers to produce.
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